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Strategic Underinvestment in Informative Advertising: the Cases of Subsitutes and Complements

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Author Info
Boyer, M.
Moreaux, M.

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Abstract

We analyze the strategic pricing and informative advertising decisions made by firms in duopolistic contexts. We show that whether the products are substitutes or complements, these exist strategic settings in which firms keep potential consumers uninformed about their products even if advertising cost is zero.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 98.502.

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Length: 23 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:gremaq:98.502

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Related research
Keywords: ADVERTISING OLIGOPOLIES MARKET STRUCTURE

Other versions of this item:

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising

Cited by:
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  1. Ulrich Doraszelski & Sarit Markovich, 2004. "Advertising Dynamics and Competitive Advantage," Computing in Economics and Finance 2004 61, Society for Computational Economics. [Downloadable!]
  2. Jeffrey Hyde & Brent Gloy, 2007. "Dynamic strategic responses among advertisers: the case of meat products," Economics Bulletin, Economics Bulletin, vol. 13(3), pages 1-14. [Downloadable!]
  3. Shi Qi, 2008. "Advertising, Entry Deterrence, and Industry Innovation," Levine's Bibliography 122247000000002137, UCLA Department of Economics. [Downloadable!]
  4. Shi Qi, 2008. "Advertising, Entry Deterrence, and Industry Innovation," Working Papers 2008-1, University of Minnesota, Department of Economics, revised 03 2008. [Downloadable!]
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